The Solicitors Regulation Authority has launched a consultation paper on its proposed timetable for the implementation of so-called Outcomes Focused Regulation (OFR).
The SRA said it recognised that the current rule book is “detailed and prescriptive”, claiming that the new regime by contrast will be “more effective, proportionate and targeted”.
The regulator also said it would spend less time on low-level matters and focus instead on “the things which matter most to consumers”. This would help build a more productive relationship with providers of legal services, it added.
The SRA said: “Flexibility, not lower standards, will be the keynote of the new regime, and firms which flout compliance will face tough sanctions.”
The watchdog’s approach "will include:
- Working with firms to focus on acting in a principled manner to deliver good standards of service to consumers, rather than compliance with detailed rules
- Analysing the potential risks faced by consumers and taking pro-active action when necessary
- Ensuring legal services are delivered by principled, competent firms and individuals
- Encouraging firms and individuals to tackle risks themselves, allowing the SRA to concentrate on 'those who can’t, or won’t, put things right'
- Taking effective, fair and proportionate enforcement action to create a credible deterrent, and
- Concentrating resources on dealing with those firms that pose a serious risk."
Part of the SRA’s dialogue with consumers and providers of legal services over the effect of the Legal Services Act 2007, Freedom in Practice: Better outcomes for consumers, OFR will mean that those firms that take responsibility for managing risk and do it successfully will be left “in large part” to get on with running their businesses.
“This will require a high degree of confidence between the SRA and firms,” the regulator said. “The SRA is working hard to build this confidence by increasing its capacity in key areas such as risk analysis, ensuring a robust governance structure across the SRA, and enhancing its commercial awareness.”
Charles Plant, chairman of the SRA, insisted that the new regime was not light-touch regulation. He said: “Firms will have to comply with broad principles, but the will be able to choose how they do this. Firms which will not or cannot fulfil their responsibilities will face tough sanctions.”
A final handbook for regulation under the new regime – and that of alternative business structures – will be published in March or April 2011, ahead of implementation in October 2011.
A copy of the consultation paper can be downloaded at www.sra.org.uk/consultations. The consultation closes on 27 July 2010.
The Solicitors Regulation Authority has launched a consultation paper on its proposed timetable for the implementation of so-called Outcomes Focused Regulation (OFR).
The SRA said it recognised that the current rule book is “detailed and prescriptive”, claiming that the new regime by contrast will be “more effective, proportionate and targeted”.
The regulator also said it would spend less time on low-level matters and focus instead on “the things which matter most to consumers”. This would help build a more productive relationship with providers of legal services, it added.
The SRA said: “Flexibility, not lower standards, will be the keynote of the new regime, and firms which flout compliance will face tough sanctions.”
The watchdog’s approach "will include:
- Working with firms to focus on acting in a principled manner to deliver good standards of service to consumers, rather than compliance with detailed rules
- Analysing the potential risks faced by consumers and taking pro-active action when necessary
- Ensuring legal services are delivered by principled, competent firms and individuals
- Encouraging firms and individuals to tackle risks themselves, allowing the SRA to concentrate on 'those who can’t, or won’t, put things right'
- Taking effective, fair and proportionate enforcement action to create a credible deterrent, and
- Concentrating resources on dealing with those firms that pose a serious risk."
Part of the SRA’s dialogue with consumers and providers of legal services over the effect of the Legal Services Act 2007, Freedom in Practice: Better outcomes for consumers, OFR will mean that those firms that take responsibility for managing risk and do it successfully will be left “in large part” to get on with running their businesses.
“This will require a high degree of confidence between the SRA and firms,” the regulator said. “The SRA is working hard to build this confidence by increasing its capacity in key areas such as risk analysis, ensuring a robust governance structure across the SRA, and enhancing its commercial awareness.”
Charles Plant, chairman of the SRA, insisted that the new regime was not light-touch regulation. He said: “Firms will have to comply with broad principles, but the will be able to choose how they do this. Firms which will not or cannot fulfil their responsibilities will face tough sanctions.”
A final handbook for regulation under the new regime – and that of alternative business structures – will be published in March or April 2011, ahead of implementation in October 2011.
A copy of the consultation paper can be downloaded at www.sra.org.uk/consultations. The consultation closes on 27 July 2010.